Conventional loan question

[Takeshi Yashima]

Hi,

I went to Chase Bank today and I asked about pre-approval letter for my potential investment property (I will focus on SFR for my first investment). The loan officer told me that property has to be "habitable" (meaning property has to have carpet, functional Kitchen, bathroom, etc) in order for them to approve the loan. The problem is that the properties I am looking at right now are all REOs, which would require certain extent of rehab. Does this mean that I will not be able to get conventional loans for distressed propertieis through banks? Or is it just that Chase is somewhat not investor-friendly? If banks normally don't lend money for distressed properties, what other ways can I get loans? If anyone can let me know, I will really appreciate it. Thanks!

[Daniel Garcia]

In the properties we have purchased and resold, our buyers have had a hard time with Chase/Wamu. BofA is more lenient, but they take as much as 60 days. Wells is even tougher than Chase. My buyers have had a good experience with Credit Unions. You're in Burbank so try Lockheed.